[뉴욕증시 주간전망] “Either earn a lot of money or collapse”…will the rocket rise to lead to the’Game Stop Syndrome’?

This week (1-5), the New York stock market is expected to continue fluctuating with the sense of the’Game Stop Syndrome’ spreading all over the world. In addition, the current status of the Corona 19 vaccination, which was disrupted in the original supply plan, is a key variable in the market.

Ants and hedge funds bout… Will the’Game Stop Frenzy’ continue?

The US stock market is suffering from a sharp fluctuation. This is because there is a bout between individual investors and hedge funds, centering on some stocks such as game retailer’Game Stop’. In the midst of growing anxiety across the market, investors are expected to pay attention to the two’s battles and the authorities’ responses in this regard.

GameStop is one of the stocks that made Wall Street the busiest in recent years. Gamestop shares, which were only $17 at the beginning of this year, soared to $325 on the 29th (local time). It surged by 1625% in one month.

The first thing that sparked the rise of GameStop’s stock price was the announcement of the joining of the board of directors, the founder and activist investor of Chey, a pet supplies company. Cohen unveiled its vision to change its offline-oriented business model to online-oriented, such as streaming, and investors flocked with enthusiasm. Gamestop became the hottest stock on Wall Street, as individual investors even bought call options.

Later, Tesla’s CEO Elon Musk tweeted about “Gamestonk” on Twitter, fueling the already soaring stock price. In Musk’s words, GameStop’s stock price rose a whopping 62%.

Ant investors laughed at Gamestop’s ups and downs, but hedge funds that expected a stock price decline and started short selling suffered huge losses. They were driven to the so-called’short squeeze’ to buy back stocks that were sold with more funding from outside at a higher price. Short squeeze is a concentrated buying of stocks to cover a short position. In response, Market Watch diagnosed, “It shows the victory of the ants who eventually charged with liquidity in the confrontation between the short selling forces and ants.

The market is keen to see if the’game stop phenomenon’ will continue to affect this week as well. For the time being, the market is expected to fluctuate due to the battles of individual investors and hedge funds centered on some stocks. SYZ Private Banking’s director of investment for private banking, Luke Philip, said, “The so-called game stop phenomenon has emerged as a new background for individual investors, and cannot be ignored.”

On the other hand, some point out that the position of hedge funds is not large enough to impact the market as a whole. It means that the overreaction of the market can be resolved sooner or later.

Moreover, as regulators have also revealed that they are watching the collective actions of individual investors, the market is drawing more attention. Earlier, the U.S. Securities and Exchange Commission (SEC) said it would check whether investment restrictions or other measures could have disadvantaged investors. In addition, Finance Minister Janet Yellen and other government officials from Joe Biden said they were watching the phenomenon, and the parliament was also discussing the situation.

The EU even imposes restrictions on exports from overseas… supply of Corona 19 vaccine’red light’

Corona 19 vaccination situation is also a material that investors pay attention to. There is growing controversy that the supply of the Corona 19 vaccine is not smooth, especially in Europe. Vaccinations in the capital Paris and its suburbs will be stopped starting on the 2nd of next month due to a lack of vaccines in France. Earlier, the Spanish capital Madrid also stopped vaccination for two weeks due to lack of vaccine.

As supply was disrupted due to a shortage of supplies, the European Union even introduced restrictions on exports outside the country. Conflict between the two sides is intensifying, as AstraZeneca said it could deliver only 40% of the 80 million doses it decided to supply in the first quarter.

US pharmaceutical company Modena also put a brake on its original vaccine supply plan. Moderna has decided to cut France’s supply for next month by 25% from the plan, and Italy has also notified that it will cut supply by 20%.

Will new hires in the US come back to life…

The employment indicators released this week are also an event that can determine the flow of the market. The US Department of Labor releases its employment report on the 5th. The dominant forecast is that it will improve from December last year when 140,000 jobs were lost. The Wall Street Journal (WSJ) also predicted a 105,000 increase in new employment in the United States in January. The unemployment rate is expected to record 6.7%, the same as the previous month.

In addition, automatic data processing (ADP) employment reports and weekly number of new unemployment benefits claims will be released. In addition, the Manufacturing Purchasing Managers Index (PMI) is scheduled to be released.

In addition, attention is drawn to the performance announcements of major companies. This week, Amazon and Google’s parent company Alphabet are waiting. In addition, the procedure for introducing $1.9 trillion worth of stimulus measures professed by President Biden is expected to become an issue in the market again. Biden pledged to pass a large-scale stimulus package, but the reaction of the opposition Republican Party was cold and attention was focused on the congressional discussion process.